MINT

MINT: 2QFYMar12 results inline to slightly ahead. DPU was 2.29 cts, +12% yoy, +1% qoq, driven by revenue and NPI increase of 15% and 17% respectively. Underlying trends were firm, with portfolio occupancy stable at 95% (vs 94.9% in 1Q), and rent reversions continued to be strong, up 8-23% across all segments, with the largest increase for flatted factories. Retention rate also rose from 71.1% to 85.1% with no discernible signs of tenant distress (arrears ratio at 0.2-0.3%). Average funding cost declined from 2.5% to 2.3% in spite of the extension of debt maturity profile to 3.2yrs. On outlook, mgt expects rents for generic industrial space to be relatively flat near term with downside pressure on business park rents. While enquiries have slowed, mgt sees pockets of demand in precision engg, biomedical & data centres. Deutsche maintains Buy, raises TP to $1.50 from $1.48. Credit Suisse keeps at Neutral, raises TP to $1.46 from $1.24, says yields look attractive at 6.4%. CIMB maintains Neutral, raises TP to $1.51 from $1.40, believes current P/B at 1.4x (highest in sector) has likely priced in growth potential.